UK broadband update March 2016

Budget 2016 & National Infrastructure Delivery Plan 2016–2021: this month’s Budget included the following in relation to broadband infrastructure:

• Broadband Investment Fund – The government will, in partnership with the private sector, establish a new Broadband Investment Fund. The fund will operate on a commercial basis to support the growth of alternative network developers by providing greater access to finance (also see the government’s 2015 Autumn Statement).
• 5G Study – The government has asked the National Infrastructure Commission to consider by the end of 2016 what the UK needs to do to become a world leader in 5G infrastructure deployment, and to ensure that the UK can take early advantage of the potential benefits of 5G services.
• 5G strategy and planning tool – The government will deliver a 5G strategy in 2017, based on the National Infrastructure Commission assessment of how the UK can become a world leader in 5G. The government will also support development of a network planning tool, to be trialled in Bournemouth.
• Public Sector Spectrum – The government will make available 750MHz of public sector spectrum in bands under 10GHz by 2022, of which 500MHz will be made available by 2020.
• Mobile Communications Infrastructure – Following a call for evidence published alongside the Productivity Plan, the government will announce details of greater freedoms and flexibilities in England to support the deployment of mobile infrastructure.

Also this month the government published its National Infrastructure Delivery Plan 2016–2021, setting out all of the government’s infrastructure priorities over the next five years, including in relation to digital communications.

10Mbit/s Broadband Universal Service Obligation (USO) consultation: further to its announcement last November, the government has published a new consultation seeking views on its proposed approach to introducing a new broadband USO of 10Mbit/s. The government’s view is that, given high deployment costs, the new USO should be demand-led, with providers rolling out infrastructure on request up to a reasonable cost threshold in those areas not reached by commercial investment or public sector intervention. The government intends to use primary legislation to introduce the USO, with details such as speed and quality specified in secondary legislation, as this can be revised more easily. It is also considering legislation to require Ofcom to review the USO as appropriate. The consultation runs until 18th April 2016.

Other UK broadband developments this month:

• ISP Review reported on remarks by Minister of State for Culture and the Digital Economy Ed Vaizey MP that the target of 90% of premises being able to access superfast broadband has been met, while the Scottish Government announced that “over 85% of homes and businesses across Scotland now have access to fibre broadband”. However, both Computer Weekly and Cable reported that Akamai’s latest State of the Internet report and analysis records that, while average broadband speeds in the UK continued to rise during the last three months of 2015, the current average is 13.9Mbit/s, lower than the average figure of 28Mbit/s reported by Ofcom last year.
• Ofcom published findings from its latest research into residential fixed-line broadband performance; 43% of residential fixed broadband lines were superfast products (connections with a headline speed of ‘up to’ 30Mbit/s or more) and the average actual UK residential fixed broadband download speed increased from 22.8Mbit/s in November 2014 to 28.9Mbit/s in November 2015. The research showed that the average actual speed of superfast products was 56.8Mbit/s. Ofcom also published its Annual Plan for 2016/17 which includes actions arising from the initial conclusions from its Strategic Review of Digital Communications.
• ISP Review also reported on the latest evidence to be submitted as part of the Parliamentary Culture, Media & Sport Committee inquiry into establishing world-class connectivity throughout the UK.
• Cable reported criticisms by satellite broadband provider EuropaSat that the government’s satellite broadband subsidy scheme for rural areas is too complex, which has limited take-up to date.
• Cable also reported that one in five university students are “battling inadequate broadband”.
• The Financial Times reported on growing interest in the possible sale of Network Rail’s fibre optic network infrastructure, which offers the potential to extend broadband services around the UK (more background on this here and here and also see coverage from ISP Review).
• Finally, the Telegraph, ISP Review and uSwitch reported on plans by the government to encourage broadband providers to move away from current residential broadband pricing, where line rental charges are included even if households do not make any fixed line calls.